What characterizes a single proprietorship?

A single proprietorship is characterized as a form of unincorporated business with only one owner. This means that the business operates as an extension of the individual rather than as a separate legal entity. The owner has complete control over all business decisions, retains all profits, and is personally liable for any debts or obligations incurred by the business. This structure is straightforward and low-cost to establish, making it a common choice for individuals starting their own small businesses. Given the nature of this ownership, the enterprise does not have to adhere to formal incorporation processes, which distinguishes it from other structures like corporations or partnerships.